Brent is becoming cheaper: $ 49.5 per barrel
On Friday oil has slightly fallen in price because of the doubts of market participants regarding the probability of effective actions on the stabilizing prices of the countries that produce raw materials.
The second half of Thursday was marked by the start of the oil market growth. As a result it has amounted to more than 1% after the official confirmation of Iran participation in the negotiations on September 26-28 in Algeria. Iran is the third largest producer of oil in OPEC.
Later, Minister of oil industry of Saudi Arabia Khalid Al-Falih informed Reuters that he did not consider the necessity to interfere in the actions of the market forces, noting that the market was already “moving in the right direction” by itself.
OPEC’s Secretary General Mohammed Barkindo noted that he saw the willingness of the members of the cartel to reach a consensus, because they were suffering from the prices collapse.
On the London Stock Exchange the quotations of futures contracts for Brent crude oil have decreased by 0.2% – to $ 49.57 per barrel to the beginning of the day.
October futures for WTI crude oil have fallen by 2 cents – to $ 47.31 per barrel on electronic trading on the New York Mercantile Exchange.
Until now it was not clear whether Iran would participate in the negotiations or not. The country is rapidly increasing the production and export of oil after the removal of sanctions.
The August production of Iran has amounted to 3.8 million barrels per day compared to January – less than 3 million, but the further growth of production and export is in stasis. The Wall Street Journal thinks that there are some doubts that the country can quickly reach the level of more than 4 million barrels per day, which was announced as the target at the beginning of the year.